Bitcoin (BTC) and Ether (ETH): Prospects before the US CPI! July 11 technical analysis

With the US CPI due for release on July 12, Bitcoin (BTC) and Ether (ETH) are stabilizing, raising investor expectations. The previous month, these two cryptocurrencies soared in response to this economic indicator. Could this trend be repeated this month?

Bitcoin (BTC) could break out of its current range!

In the short term, the BTC price is showing volatility, but no clear trend is emerging in the long term. Indeed, the leading cryptocurrency has remained in a price range fluctuating between $29,619 and $31,475 over the past three weeks.

It’s possible that this stagnant situation will continue today for bitcoin (BTC), pending tomorrow’s release of the US CPI. Indeed, this economic indicator could lead to greater volatility on the crypto market. This could encourage the price of BTC to break out of its current range.

Analysts are forecasting a drop in the inflation rate to 3.1% for June. If this forecast is confirmed, it could have a positive impact on Bitcoin (BTC). The previous month, BTC recorded a 25% rise following a drop in the US inflation rate.

Should it rise, BTC could then target the major resistance level at $35,000. However, if CPI exceeds forecasts, BTC could react negatively. On the other hand, the RSI divergence on the H2 scale also suggests a decline.

In this scenario, it could be worth selling Bitcoin (BTC) at $30,695, with a support target at $28,335.

Outlook for Ether (ETH)

Given the positive correlation between the two, ETH movements should closely follow those of Bitcoin (BTC). However, ETH’s short-term structure appears to be bearish. Indeed, this Altcoin has experienced a strong downward reaction on the $1900 resistance level.

This decline could be accentuated if Bitcoin (BTC) reacts negatively to inflation rates in the United States. If confirmed, Ether (ETH) could fall to support at $1,750. In this case, the $1900 support level would be an attractive level to sell.